Brp, Inc. · TSX:DOO
Brp — Q3 FY2020 Earnings Presentation
26 slides from Brp's earnings presentation, Nov 27, 2019
Slide 1: Quarterly Review: Third Quarter Ended October 31, 2019
QUARTERLY REVIEW THIRD QUARTER ENDED OCTOBER 31, 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements Caution concerning forward-looking statements Certain information included in this presentation, including, but not limited to, statements relating to our Fiscal Year 2020 guidance, our new 5-Year Plan referred to as “Mission 2025” or “M25” (including, revenues, Normalized
Slide 3: José Boisjoli, President and CEO
JOSÉ BOISJOLI PRESIDENT PRESIDENT AND AND CHIEF CHIEF EXECUTIVE EXECUTIVE OFFICER OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2019 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2019
Slide 4: FY20 Q3 Revenues, EPS - Diluted and Normalized EPS - Diluted
[1] FY20 Q3 Revenues, EPS - Diluted and Normalized EPS - Diluted Revenues Diluted Earnings per Share Normalized Diluted Earnings per Share[1] CA$ millions CA$ CA$ +18% +62% +45% $1,644 $1.49 $1.51 $1,394 $0.92 $1.04 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Q3 Quarter Highlights vs. Last Year ◼ I
Slide 5: Strong Retail Growth Globally
[1] Strong Retail Growth Globally BRP INDUSTRY[4] NORTH AMERICA 24% HIGH-SINGLE DIGIT % LATIN AMERICA[2] 23% NOT AVAILABLE EMEA[3] 12% ABOUT FLAT ASIA-PACIFIC[3] 20% MID-SINGLE DIGIT % [1]Powersports products retail [2]Based on regions where retail data is available (excludes markets served through
Slide 6: FY20 Q3: Continued Growth with all Product Lines in North America
FY20 Q3: Continued Growth with all Product Lines in North America North American Powersports Retail Growth by Product Line FY20 Q3 compared to FY19 Q3 BRP VS. GROWTH DECLINE BRP INDUSTRY INDUSTRY HIGH-SINGLE TOTAL POWERSPORTS 24% DIGIT % LOW- HIGH-SINGLE SIDE-BY-SIDE VEHICLES THIRTY % DIGIT % LOW- A
Slide 7: BRP Club 2020 Highlights: Key Introductions
BRP Club 2020 Highlights: Key Introductions MY20 CAN-AM DEFENDER PRO MY20 CAN-AM DEFENDER HD10 LIMITED More torque, more comfort, and industry-leading cargo capacity Available with CAB/HVAC offering industry with a 3.5’ x 6.0’ cargo box with easy flatbed conversion exclusive auto-climate control MY2
Slide 8: BRP Club 2020 Highlights: E-concepts
BRP Club 2020 Highlights: E-concepts Pursuing the exploration of electric vehicles as part of a broader sustainable development plan QUARTERLY REVIEW Third Quarter Ended October 31, 2019 8
Slide 9: Year-Round Products
Year-Round Products Highlights Revenues CA$ millions Year-Round Products revenues up 29% ◼ Mainly driven by a higher volume of SSV sold and the introduction of the +29% Can-Am Ryker. Side-by-Side Vehicles (SSV) ◼ Four months into the 2020 season, the North American SSV industry is $725.0 up high-sin
Slide 10: Successful First Season for the Can-Am Ryker
Successful First Season for the Can-Am Ryker DEPLOYED AN EFFECTIVE MARKETING CAMPAIGN THAT PROVIDED STRONG EXPOSURE FOR 3WV Over 2 billion impressions and 5 million web visits SUCCESSFULLY SHIFTED 3WV CATEGORY PERCEPTION Significantly improved the perception that 3WV is easy to ride, cool, and good
Slide 11: Seasonal Products
Seasonal Products Highlights Revenues CA$ millions Seasonal Products revenues up 13% ◼ Mainly driven by a favourable product mix in snowmobile and a higher volume of +13% PWC and snowmobile sold Personal Watercraft (PWC) $554.8 ◼ The North American PWC industry ended its 2019 season on September 30
Slide 12: Powersports PAC and OEM Engines
Powersports PAC and OEM Engines Highlights Revenues CA$ millions Powersports PAC and OEM Engines revenues up 12% ◼ Primarily driven by a higher volume of SSV parts and accessories +12% ◼ All Powersports products PAC revenues grew in the quarter and year-to-date $201.8 $225.7 FY19 Q3 FY20 Q3 Can-Am D
Slide 13: Marine
Marine Highlights Revenues CA$ millions Marine revenues down 1% ◼ Mainly driven by a lower volume of outboard engines sold, mostly offset by -1% the additional revenues following the acquisition of Telwater Marine ◼ For the 3-month period ended October 31, the U.S. outboard engines industry is up lo
Slide 14: José Boisjoli and Sébastien Martel
JOSÉ BOISJOLI SÉBASTIEN MARTEL PRESIDENT CHIEF ANDOFFICER FINANCIAL CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2019 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2019
Slide 15: FY20 Q3 - Financial Highlights
FY20 Q3 - Financial Highlights Q3 Comparison 9-month Comparison CA$ millions FY20 FY19 Change FY20 FY19 Change Total Revenues $1,643.6 $1,394.2 $249.4 $4,436.8 $3,737.9 $698.9 Growth +17.9% +18.7% Gross Profit $441.9 $356.8 $85.1 $1,070.3 $918.5 $151.8 As a % of revenues 26.9% 25.6% 24.1% 24.6% Oper
Slide 16: FY20 Q3 - Net Income and Normalized Net Income Bridge
[1] FY20 Q3 - Net Income and Normalized Net Income Bridge Net Income Bridge Normalized Net Income[1] Bridge CA$ millions CA$ millions (41) (41) 131 (40) (39) 131 (16) (17) 10 135 137 103 90 FY19 Q3 Volume, Mix, Production Costs Operating Net Financing Foreign FY20 Q3 FY19 Q3 Volume, Mix, Production
Slide 17: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory Dealer Inventory Level Dealer Inventory Bridge Units, Excluding Outboard Engines and Boats Units, Excluding Outboard Engines and Boats +14% Q1 Q2 Q3 Q4 FY19 Q3 SSV Can-Am Rest of the FY20 Q3 FY18 FY19 FY20 Ryker Line-up Highlights Dealer inventory[1] e
Slide 18: FY20 Full-Year Guidance - as at November 27, 2019
FY20 Full-Year Guidance - as at November 27, 2019 The table below sets forth BRP’s financial guidance for Fiscal Year 2020 which reflects the adoption of new IFRS 16 - Leases standard effective as of February 1, 2019. Under IFRS 16 - Leases, operating lease expenses are recorded as depreciation and
Slide 19: Closing Remarks
JOSÉ BOISJOLI CLOSING REMARKS PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2019 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2019
Slide 20: Delivering Solid Retail Growth over the Last 4 Years
Delivering Solid Retail Growth over the Last 4 Years BRP North American Powersports[1] Retail Growth BRP North American Powersports[1] Retail Units, Fiscal Year-to-date as at October 31 CAGR 12% FY16 FY17 FY18 FY19 FY20 BRP North American SSV Retail Units, Fiscal Year-to-date as at October 31 CAGR 2
Slide 21: Steady Quality Execution in our Manufacturing Operations
Steady Quality Execution in our Manufacturing Operations QUARTERLY REVIEW Third Quarter Ended October 31, 2019 21
Slide 22: Introducing M25: Setting the course for BRP 2.0
Introducing M25: Setting the course for BRP 2.0 CUSTOMER EMPLOYEE PILLARS GROWTH LEAN EXPERIENCE EXPERIENCE Deliver annual revenue growth of 10% to $9.5B TARGET and annual Normalized EPS[1] growth of 15% to $7.50 by FY25 Build on Can-Am Make waves Exceed customer Fuel the BRP Perform Pursue momentum
Slide 23: Q&A
JOSÉPERIOD Q&A BOISJOLI PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2019 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2019
Slide 24: Appendix
JOSÉ BOISJOLI APPENDIX PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2019 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2019
Slide 25: Reconciliation Tables
Reconciliation Tables Three-month periods ended 9-month periods ended CA$ millions Oct. 31, 2019 Oct. 31, 2018 Oct. 31, 2019 Oct. 31, 2018 Net Income $135.3 $90.2 $252.4 $144.6 Normalized Elements: Foreign Exchange Loss on Long-term Debt and Lease Liabilities 0.1 10.2 0.5 69.0 Transaction Costs and
Slide 26: Shtiog LYM Se0200 EVINRUDE ROTAX. can-am
oe Shtiog LYM Se0200 EVINRUDE ROTAX. can-am